While linear adaptive filters are useful in a large number of applicat
ions and relatively simple from the conceptual and implementational po
int of view, there are many practical situations that require nonlinea
r processing. This paper presents a novel adaptive nonlinear filter wh
ich derives its nonlinearity by using rational functions. The output o
f this nonlinear system is related to its inputs through a finite orde
r rational function. The rational function structure is attractive in
adaptive filtering since it is a universal approximator and the coeffi
cients of the filter can be estimated using a linear adaptive algorith
m. Two representative examples from signal processing, classification
and prediction, are used to demonstrate capabilities of this nonlinear
adaptive filter that are lacking in its linear counterpart. The poten
tial uses for this nonlinear adaptive filter will be further demonstra
ted by discussing the problem that is often encountered in the real wo
rld, namely, the estimation of directions-of-arrival (DOA) of two clos
ely spaced signals using a uniform array and time series modeling. For
the first problem, a new high resolution method using a rational func
tion is derived and standard simulation examples are given. For the la
tter, real-life radar data are used as a test for the rational functio
n filter in the practical application. In both cases, the results that
are obtained using this nonlinear adaptive filter are encouraging.